^ 


IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


1.0 


1.1 


•M|| 


1.25 


^  %. 


%*^ 


>* 


Hiotographic 

Sdences 
Corporation 


■« 


a>^ 


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23  WflST  MAM  STMR 

wnST6R,N.Y.  USM 

(716)t72-4S03 


¥^ 


^A*- 


CIHM/ICMH 

Microfiche 

Series. 


% 


^ 


cmivi/iciviH 

Collection  de 


Canadian  Inst^ute  for  Historical  IVIicroreproductions  /  institut  Canadian  da  microraproductiona  hiatoriquaa 


©1984 


T«ehnieal  and  Bibliographic  Not«fi/NotM  t«ehnU|UM  M  biiriioar«phiquM 


The  kintdtuM  hM  attamptMl  to  obtiMn  th«  !»ott 
orifljinal  copy  availablo  for  filming.  Footuros  of  tiiit 
copy  which  inay  bo  bibiiographlcoeiy  uniquo. 
which  may  altar  any  of  tha  imagoa  in  tha 
raproductiofi,  or  which  may  algnlflcantly  change 
tha  uaual  mathad  of  filming,  ara  chackad  balow. 


L'Inatitut  a  microfiim*  la  malHaur  axampiaira 
qu'ii  iui  a  (HA  poasibia  da  aa  procurer.  Laa  details 
da  cat  axampiaira  qui  aont  paut-Atra  uniquaa  du 
point  da  vua  bibliographlqua.  qui  pauvant  modif  iar 
una  imaga  raproduita,  ou  qui  pauvant  axigar  una 
modification  dana  la  mAthoda  normala  da  filmaga 
aont  indiquAa  ci-daasoua. 


r-ji^  Cdourad  covara/ 
LUi   Couvartura  d»  coulaur 

□   Covara  damagad/ 
Couvartura  andommagia 

□   Covara  rastorad  and/or  laminatad/ 
Couvartura  raataurAa  at/ou  pallicuita 

□   Covar  titia  miaaing/ 
La  titra  da  couvartura  manqua 

r~n   Coiourad  mapa/ 


D 
D 
D 
□ 


D 


Cartaa  gAographiquaa  an  coulaur 

Coiourad  ink  (i.a.  othar  than  blua  or  black)/ 
Enera  da  coulaur  (i.a.  aufa  qua  blaua  ou  noira) 


Coiourad  piataa  and/or  illuatrationt/ 
Planchaa  at/ou  iiluatrationa  an  coulaur 


Bound  with  othar  matarial/ 
RaliA  avac  d'autroa  documanu 

Tight  binding  may  causa  shadows  or  distortion 
along  interior  margin/ 

La  re  liure  serrie  peut  ceuser  de  i'ombre  au  de  le 
distortion  ie  iong  de  la  marge  SntArieure 

Blank  leaves  added  during  restoration  may 
appear  within  the  text.  Whenever  possible,  these 
heve  been  omitted  from  filming/ 
11  se  peut  que  certaines  pages  'Blanches  ajout4es 
iors  d'une  restauration  apparaiaaent  dana  la  texte, 
mais,  Icrsqua  cela  Atait  possible,  ces  pages  n'ont 
pes  At*  fiimAes. 

Additional  comments:/ 
Commentaires  s*jpplAmentaires; 


D 
D 

D 
0 


Coloured  pages/ 
Pages  de  couleur 

Pegea  damaged/ 
Pagea  andommagAea 

Pages  restored  and/or  laminated/ 
Pages  restaurAes  at/ou  pelliculAes 

Psges  discoloured,  stained  or  foxed/ 
Peges  dAcoiorAes,  tachetAes  ou  piquAes 


□Pages  detached/ 
Pages  dAtachAes 

PTV  Showthrough/ 
I — I   Transparence 

I      I   Queiity  of  print  veriea/ 


D 


QualitA  inAgale  de  I'impreseion 

includes  supplementary  materiel/ 
Comprend  du  matArie!  supplAmentaire 

Only  edition  available/ 
Sauie  Adition  disponibie 


Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  refilmed  to 
ensure  the  best  possible  image/ 
Lea  pages  totsiement  ou  partieilement 
obscurcies  per  un  feuiilet  d'errata,  una  peiure, 
etc..  ont  AtA  fiimAes  A  nouveau  de  fa^on  A 
obtenir  la  meilieure  imege  possible. 


This  item  is  filmed  «it  the  reduction  ratio  checked  below/ 

Ce  document  eat  fiimA  au  taux  de  rAduction  indiquA  ci-dessous. 

10X  14X  18X  22X 


26X 


30X 


^^  / 


12X 


16X 


aox 


24X 


28X 


32X 


TIm  eomr  fHiiMd  hwa  has  Immi  r«prodyet4  thanks 
to  tha  ganaroaity  of: 

Ubrary  of  tha  Public       | 
Arehlvas  of  Canada 


L'axamplaira  fNmA  fut  raprodult  griea  i  la 

Qanapoaita  oa: 

U  bibliotMqua  daa  Archlvaa 
puMlquaa  du  Canada 


TfM  Imagaa  appaaring  hara  ara  tha  baat  quality 
poasibia  eonaidaring  tha  condition  and  laglbHIty 
of  tha  originai  copy  and  in  icaaping  vvlth  tha 
filming  contract  specifications.  ^;'   f  :^?^  v 


Original  copiaa  in  printad  papar  covars  aia  fHmad 
beginning  with  tha  front  cover  and  ending  on 
tha  lest  psge  with  a  printad  or  Hluatrated  impree- 
sion,  or  the  bacic  cover  when  eppropriate.  All 
otiier  originai  copiae  ere  filmed  beginning  on  the 
first  psge  with  a  printad  or  iiiuetratad  impree- 
sion,  snd  snding  on  the  laat  pege  %irtth  a  printad 
or  iliustretod  impreeeion. 


v-'-* 


Lee  imagae  suhmntae  ont  4t*  raproduHee  evec  le 
plue  grand  soin.  compta  tenu  de  le  condition  et 
do  le  nattetA  de  I'eNempielra  fllfn4.  et  en 
conformiti  evec  les  conditions  du  contret  de 
fHmaga. 

Lee  exempleiree  orlginaux  dont  ia  couverture  en 
pepler  eet  imprimte  sent  fHmte  sn  commsn9ont 
per  le  premier  plot  et  en  termlnant  sdt  per  ie 
demMte  pege  qui  comporte  une  empreinte 
dimpreaeion  ou  dlMustration.  soit  par  ie  second 
plot,  sehm  la  ces.  Tous  lee  autres  exempleiree 
origlneujc  sent  fiimAs  en  commenpent  per  ie 
premlAre  pege  qui  comporte  une  empreinte 
d'impreeelon  ou  d'illustratlon  et  en  terminent  par 
ia  damlAre  pege  qui  comporte  une  telle 
empreinte.   -? 


The  !etft  recorded  freme  on  eech  microfiche 
shsH  contein  ttm  symbol  — ^  (meening  "CON- 
TilMlTED"),  or  the  symbol  ▼  (meaning  "END"), 
whichever  eppiies. 


Un  des  symboiss  suivents  epparattre  sur  ia 
derni^^  imege  de  clicque  microficlie.  scion  ie 
ces:  ie  symboie  -^  signifie  "A  SUiVRE",  ie 
symbols  ▼  signlfls  "FIN". 


IMaps,  plates,  cherts,  etc.,  may  be  filmed  at 
different  reduction  retios.  Those  too  ierge  to  be 
entirely  included  in  one  exposure  ers  filmed 
beginning  in  the  upper  left  liend  comer,  left  to 
right  end  top  to  bottom,  es  many  frames  es 
rsqulrsd.  Ths  following  diogrsms  illustrate  the 
method: 


Les  certM,  planches,  tableaux,  etc..  peuvent  Atre 
flimte  A  dee  taux  de  rMuction  diff Arents. 
Lorsqus  ie  document  eet  trop  grend  pour  Atre 
reproduit  en  un  seui  clichA,  11  est  filmA  A  pertir 
de  i'engie  supArieur  geuche.  de  geuehe  A  droite, 
et  de  heut  en  bee.  sn  prsnent  ie  nombre 
d'imeges  nAceeselre.  Las  diagrammes  suivsnts 
liiufttrsnt  la  mAthods. 


1 

2 

3 

1 

2 

8 

.  4 

8 

6 

-ffi 


*"'**'SiiL- 


^^ 


/ 

V 


":     r- 


y 


MEMORANDTJM 


ON 


iax# 


THE  COMMERCIAL  PLATIONS, 


^, 


^PAST  AND    PRESENT, 


OF 


ill  BfflflSB  HORTH  AMffllCAN  Wmm 


wrrti 


THE  UNITED  STATES  OF  AMERICA. 


x»<-^'ii! 


*V"*1 


m^^ 


V*    ^""^ 


'  X': 


.& 


MEMORANDUM 


ON  THE 


Commtrcial  liclations,  past  and  present^  of  the  British  North 
American  Provinces  with  the  United  Stats  of  America. 


PA 


¥*^.>  ■,■    i 


The  undersigned,  Joint  PlenipoteutiarietJ  of  Her  Britannic 
Majesty,  with  full  powers  for  the  negotiation  and  conclu- 
sion of  a  Treaty  with  the  United  States  relative  to  Fisheries, 
Oorninerce  and  Navigation,  deem  it  fitting  that,  at  the  out- 
set of  the  negotiations  with  which  they  have  been  charged, 
they  should  submit  for  the  consideration  of  the  Secretary 
of  Stsite  some  suggestions  in  regard  to  the  commercial 
relations  between  the  United  State:^  and  the  Canadian 
Dominion,  which  may  not  be  unworthy  of  attention. 

All  the  figures  used  in  this  memorandum  are  taken  from 
the  oflUcial  documents  of  the  United  States  Government, 
except  when  otherwise  stated. 

Wlien  the  British  North  American  Provinces  or  Canada 
are  spoken  of,  all  the  Provinces  now  composing  the  Do- 
minion, and  also  the  Island  of  Newfoundland,  are  included 
therein. 


An  impartial  examination  of  the  commercial  relations 
that  have  existed  between  the  United  States  and  the  British 
North  American  Provinces  for  the  last  fifty  years,  cannot 
fail  to  establish,  we  venture  to  think,  beyond  all  doubt, 
that  the  traffic  between  them  has  been  exceedingly  valu- 
able to  both  countries,  but  that  the  United  States  have, 


i 


2 

from  first  to  last,  reaped  greatly  the  largest  advantage 
from  it. 

.  In  the  twelve  years  from  1821  to  1832  (both  years  inclu- 
sive) the  United  States  official  records  show  that  tlie  ex- 
ports of  the  United  States  to  the  British  North  American 
Provinces  were  of  the  aggregate  value: 

In  home  products,  of- - $30,907,417 

In  foreign  products,  of- 403,909 

Total  United  States  exports-- $31,401,326 

And  that  -the  entire  imports  of  the  United 
States  in  the  same  period  from  the  Provinces 
were  but - 7,684,559 

Leaving  a  balance  of  trade  in  favor  of  the 

United  States  of  no  less  than $23,716,767 

In  the  thirteen  years  following  the  above  period,  (1833 
to  1845,)  the  same  state  of  things  is  found,  with  a  steady 
increase  of  the  aggregate  traffic.  The  exports  of  the  Re- 
public to  the  British  North  American  Provinces  were: 

Of  domestic  products - $54,082,537 

Of  foreign  products - 4,640,332 

Total  United  States  exports  (1833  to  1845)-  $58,722,869 
And  the  imports  of  the  Republic  from  the 

Provinces  were  but 23,356,275 

Leaving  a  balance  in  favor  of  the  United  States 

of-—-- -  $35,366,594 

TRANSPORTATION  IN  BOND. 

In  1846  we  enter  upon  a  period  when  the  United  States 
Government,  after  very  many  years  of  earnest  effi)rt,  suc- 
ceeded in  obtaining  from  Great  Britain  a  relaxation  of  the  old 
restrictiv  e  navigation  laws  in  regard  to  the  British  Colonies. 
With  it  came  the  international  drawback  system  for  the 
encouragement  of  overland  transportation  to  and  from  the 
Atlantic  Ocean  without  payment  of  duties.    Although  this 


8 

niejiHiire  only  extended  to  tlie  transport  of  merchandise,  it 
is  instructive  to  observe  the  immediate  and  remarkable 
efloft  it  had  on  the  direct  transactions  between  the  Repub- 
lic and  the  Colonies.  The  iiggreijate  imports  and  exports 
between  the  countries  immediately  rose  from  88,074,291, 
in  the  year  1845,  to  tlie  following  figures: 

1846.  Aggregate  import  and  export  trade...       $9,344,150 

1847.  "  "  "  ---       10,329,470 

1848.  *'  "  —  12,029,122 

1849.  "  "  .__  10,931,147 

1850.  "  "  -.-  15,193,497 

1851.  ''  "  --  18,708,045 

1852.  "  "  ...  16,619.315 

1853.  "  "  ...  20,691,360 

Total - $113,846,106 

Thus,  while  from  1821  to  1832  the  aggregate  annual 
traffic  betw^een  the  countries  averaged  $3,257,153,  and 
from  1833  to  1845,  $6,313,780  per  annum— under  the  intlu- 
enco  of  a  more  liberal  policj-  the  traffic  rose,  from  1846  to 
1853,  to  no  less  an  average  than  $14,230,763  per  annum. 

And  the  balance  of  trade  still  preponderated  enormously 
to  the  advantau^e  of  the  United  States.  In  these  eijjht 
years  the  Republic  exported  to  the  Provinces — 

Of  home  products-- $55,072,260 

Of  foreign  products -.-     22,020,254 

Total  United  States  exports  (1846  to  1853)-  77,092,514 
While  the  imports  of  the  Republic  from  the 

rroviuces  were  but 36,753,592 

Leaving  in  favor  of  the  United  States,  on  eight 

years'  transactions,  the  vast  balance  of $40,338,822 

But,  in  addition  to  this  direct  interchange  of  merchan- 
dise, with  its  great  preponderance  in  favor  of  the  Republic, 
a  large  amount  of  the  import  and  export  traffic  between 
Great  Britain  and  the  Provinces  now  began  to  be  carried 
in  bond  over  the  canals  and  railways  of  the  United  States 


:i 


to  Atlantic  or  inland  ports,  and  thence  dispatched  to  their 
ultimate  destinations  in  American  ships  und  steamers — 
vastly  to  the  gain  of  the  Republic,  and  without  any  cor- 
responding advantage  to  the  Provinces. 

THE  RECIPROCITY  TREATY. 

Tlie  great  success  that  thus  attended  this  first  partial 
experiment  of  reciprocal  libenility  in  commercial  inter- 
course between  the  two  countries,  led  directly  and  easily 
to  proposals  for  the  much  more  decided  measure  of  an  iu- 
i;erchange  of  the  natural  products  of  the  two  countries  free 
•of  custom 8- duty.  For  a  number  of  years  the  subject  was 
keeuiy  debated  in  all  its  bearings;  and  it  is  instructive  to 
^look  back  on  the  record  of  those  discussions,  and  observe 
tthe  long  list  of  distinguished  American  statesmen  who 
^were  warm  advocates  of  the  measure. 

The  Reciprocity  Treaty  of  1854  was  signed  on  5th  June  of 
tthat  year,  by  Mr.  Marcy,  on  behalf  of  the  United  States,  and 
iby  the  late  Lord  Elgin,  as  representative  of  Great  Britain. 
Its  happy  effects  were  feit  instantaneously;  and  it  is  only 
necessary  to  refer  to  the  speeches  and  papers  of  the  able 
men  of  all  parties  in  both  countries  who  promoted  the 
measure,  and  to  analyze  the  official  returns  of  its  operation 
while  in  force,  to  arrive  irresistibly  at  the  conclusion  that 
its  results  greatly  surpassed  the  most  sanguine  anticipa- 
tions of  its  originators  and  advocates. 

The  Treaty  may  be  said  to  have  been  thirteen  years  in 

•operation;  for  though  nominally  it  betran  late  iu  1854  and 

ended  early  in  1866,  the  traffic  was  pushed  with  such  en- 

•ergy  during  the  months  of  its  operation  in  these  two  years, 

as  to  place  them  on  an  equality  ,vith  the  other  years. 

To  obtain  a  just  appreciation  of  the  value  of  the  traffic 
between  the  Republic  and  the  Provinces  during  the  thir- 
teen years'  operation  of  the  Treaty,  it  is  necessary  to  keep 
in  mind  that  the  Civil  War  in  the  States  in  the  last  four 
years  of  the  Treaty's  existence  enhanced  the  value  of  com- 
modities, and  so  deranged  the  industrial  interests  of  the 
Republic  as  to  give  the  Provinces  a  temporary  advantage 


in  the  traffic,  forbidding  any  fair  deduction  from  it  as  to 
the  ordinary  course  of  trade  in  times  of  peace.  In  one 
year  (1866-'66)  at  the  end  of  the  war  the  exports  of  British 
North  America  to  the  United  States  rose,  according  to 
the  United  States  Official  Records,  to  $64,714,383. 

However  profitable  this  casual  advantage  may  have  been 
to  the  Provinces,  it  can  hardly  be  regarded  as  an  objection 
to  the  Treaty  tliat  in  time  of  war,  when  the  American  hus- 
bandman was  debarred  from  tilling  his  fields,  the  necessi- 
ties of  life  were  largely  supplied  under  it  without  the  addi- 
tion of  onerous  custome-duties  and  custom-house  restric- 
tions. Assuredly,  had  the  Treaty  not  then  been  in  exist- 
ence, every  ton  of  these  supplies,  under  the  pressing 
urgency  of  the  case,  would  have  found  its  way  across  the 
lines,  probably  with  little  reduction  of  profit  to  the  pro- 
ducer, but  gi'eat  increase  of  cost  to  the  consumer. 

The  grand  fact  remains  that,  under  the  operation  of  the 
reciprocity  treaty  of  1854,  the  aggregate  interchange  of 
commodities  between  the  Republic  and  the  Provinces — to 
promote  which  the  treaty  was  concluded — rose  from  an  an- 
nual average  of  $14,230,763  in  the  previous  eight  years,  to 
$33,492,754,  gold  currency,  in  the  first  year  of  its  exist- 
ence; to  $4?, 942,754,  gold  currency,  in  the  second  year  of 
its  existence;  to  $50,339,770,  gold,  in  its  third  year;  and  to 
no  less  a  sura  than  $84,070,955,  at  war  prices,  in  its 
thirteenth  year. 

And  notwithstanding  the  anomalous  character  of  the  cir- 
cumatiinces  arising  from  the  existence  of  Civil  War  during 
so  considerable  a  portion  of  the  Treaty's  existence,  by  which 
the  imports  from  the  Provinces  were  greatly  increased  in 
volume  and  value,  and  the  exports  to  the  Provinces  as 
naturally  reduced  in  quantity,  the  balance  of  trade,  during 
the  existence  of  the  treaty,  was  largely  in  favor  of  the  United 
Stat'^s  In  the  thirteen  years  of  its  operation,  the  Provinces 
purchased  from  the  Republic  commodities,  according  to 
the  United  States  returns,  to  the  value  of  $346,180,264,  and 
the  Republic  purchased  from  the  Provinces  $325,726,520, 
leaving  a  gross  cash  balance  in  favor  of  the  United  States 


6 

of  ^20,454,240.  But  the  balance  Wfts  in  tuct  much  h\r;<er 
thiui  this.  T)nrin<;f  the  first  h'u  yonrs  <if  the  Treiity,  the 
trnnsiictions  between  the  countries  showed  a  clear  buhuico 
in  fuvor  of  tlie  United  States  of  $«2,013,r)4r).  Tiitit  bahmco 
appeiirp,  from  the  United  States  R<'tnrnH,  to  have  bc(Mi  re- 
duced, hy  the  operations  of  the  foHowin^?  tliree  years,  to 
tlie  amount  of  $20,454,246;  but  this  arose,  no  doubt, 
from  the  inflated  vahies  at  which  the  importations  into  the 
United  States  from  tlie  Provinces  were  made  under  the 
Treaty,  during  tlie  War — there  being  no  customs-duty  to 
necessitate  accuracy  and  every  temptation  to  over-valua- 
tion on  the  part  of  the  importer.  Accorditig  to  the  olHcial 
returna  of  the  several  Britidi  Provinces,  (which  are  accu- 
rately kept,)  the  Provinces  purchased  from  the  Republic, 
during  the  thirteen  years  in  question,  commodities  to  the 
aggregate  value  of  $359,667,257,  gold  valuation,  and  the 
Republic  purchased  from  the  Provinces  $197,056,257,  in 
same  valuation,  leaving,  as  the  sum  total  of  the  results  of 
the  Treaty  of  1854,  an  aggregate  international  traffic  of 
$623,437,525,  and  a  gold  balance  in  favor  of  the  Republic 
of  $95,796,989. 

TRAFFIC  WITH  CANADA  IN  COMPARISON  WITH  OTHER  STATES. 

The  importance  of  the  ('anadian  traffic  under  the  re- 
ciprocity Treaty  can  be  mo.st  clearly  seen,  perhaps,  by  a 
comparison  of  it  with  the  transactions  which  the  Republic 
had  with  other  foreign  countries  during  the  same  years. 
The  total  exports  of  the  United  States  from  1854  to  1866 
(both  years  inclusive)  amounted  to  upwards  of  four  thou- 
sand millions  of  dollars.     Of  this  vast  export  traffic — 

Englanc^  and  her  possessionsf  took $2,769,974,538 

France  and  her  possessions  took 453,993,996 

Spain  and  her  possessions  took 265,893,221 

Germany  took - - 207,308,647 

$3,697,170,402 
And  all  the  rest  of  the  wor^  I  took  the  balance. 

Of  the  above  exports,  Canada's  share,  as  we  have  already 


7 

eeoii,  wafl  $340,1^0,204— an  ftrnount  equal  to  the  n^un-^iuto 
exports  taken  from  the  United  States  in  tlie  same  years  l>y 
China,  I'.ra/il,  Italy,  Hayti,  liiissia  and  her  possi-ssicns, 
Venezuela,  Austria,  the  Ari,^entine  liupuhlie,  Denmark  and 
her  possessions,  Turkey,  I'ortupil  and  Insr  possi-ssioiis,  the 
Sand\vi<!l»  Islands,  the  Central  American  States  and  Japan, 
all  put  togi'lher.  In  nnirked  eontruHt  to  this,  however,  the 
United  Slates  inii)orted  from  these  eountries,  in  the  same 
years,  to  the  amount  of  ^■).".8,523,88n,  leavin^'  a  eaah  halance 
to  be  paid  to  them  by  the  Republic  of  ^102,109,010,  while 
C^anadti  paid  over  to  the  States  a  cash  balance  of  §9r),7l)6,- 
980  in  gold. 

CHARACTER  OF  TIIAFFIC  UNDER  THE  TREATY. 

The  character  of  the  commodities  purchased  from  the 
Republic  by  the  Provinces  during  the  existence  of  the  Re- 
ciprocity  Treaty  is  also  worthy  of  special  note.  In  the  thir- 
teen years  of  its  operation  the  total  purcliases  by  the  Prov- 
inces of  United  States  home  productions  and  of  foreign  arti- 
cles imported  by  United  States  merchants,  were  as  follows: 

Animals  and  their  products $35,433, 213 

Breadstufts - 112,058,473 

Other  farm  products 3,242,082 

Timber  ---- - 8,511,488 

Manufactures  -.- 88,04!>,855 

Miscellaneous - --- 24,044,077 

Total  home  productions $271,940,988 

Foreign  commodities  bought  from  the  mer- 
chants of  the  United  States  and  imported 
into  Canada -     62,379,718 

Total  purchases $334,320,706 

From  this  it  will  be  seen  that  not  less  than  $151,029,573 
of  manufactured  goods  were  purchased  from  the  United 
States  by  the  Provinces  under  the  operation  of  the  Recipro- 
city Treaty. 


8 


TRANSPORTATION  TRAFPIO  DIDDER  THE  TREATY. 

Did  nothing  more,  thereforf;,  than  the  volume  of  traffic 
between  the  countries  and  tho  comparative  contributions 
of  each  country  to  it,  enter  into  the  question  of  the  relative 
advantages  derived  from  the  Trerty  by  each,  no  doubt  could 
exist  as  to  the  United  States  having  reaped  much  greater 
profit  from  the  Treaty  of  1864  than  the  Provincts.  But 
there  is  another  very  important  branch  of  the  account. 
The  transportation  traffic  sent  to  and  brought  from  foreign 
countries  by  the  Provinces,  in  bond,  over  the  railways  and 
canals,  and  in  the  ocean  ships  and  steamers  trading  from 
United  States  ports,  rose  under  the  operation  of  the  Treaty 
to  an  importance  secondary  only  to  the  traffic  in  domestic 
productions.  Previous  to  the  negotiation  of  the  Treaty  this 
traffic  had  assumed  considerable  dimensions;  but  the  vast 
increase  that  occurred  under  its  operation  must  have  drawn 
very  large  gains  into  tha  cotfers  of  the  Republic,  and  indi- 
rect advantages  quite  as  valuable  as  the  direct  ones.  No 
official  returns  of  the  goods  thus  passed  over  the  United 
States  seeius  to  havo  been  preserved  until  the  fiscal  year 
1867-'68;  but  from  the  Returns  since  published  we  can  form 
some  idea  of  the  great  profit  that  must  have  accrued  to  the 
Republic  while  the  Treaty  was  in  force.  These  Returns  thus 
state  the  values  of  the  foreign  exports  that  passed  over  the 
United  States  in  transitu  during  the  past  six  years: 

1868.  Total' United  States  transit  traffic |!21, 515,604 

1869.  «  "  21,095,984 

1870  «  «  ... 23,191,860 

1871.  "  "  — .-..  25,375,037 

l^n.  «  "  31,885,320 

1873.  "  «  40,099,185 

Total  transit  traffic —    -4162,662,990 

Of  this  vast  traffic,  $115,241,704  consisted  of  merchandise 
imported  by  the  Provinces  from  other  countries  and  car- 
ried over  United  States  railways  and  canals  into  Canada; 


9 

and  $48,556,557  of  it  coneisted  of  produce  exported  tibroad 
from  the  Provinces  via  the  United  States.  The  fact  that 
these  two  ar:ount9  appear  to  make  unitedly  more  than  the 
whole  aggregate  of  the  United  States  iransit  trade,  arises 
from  shipments  made  from  one  part  of  Canada  to  aiiotlior, 
and  consequently  appearing  in  the  list  of  goods  goinij^  into 
the  Unit'jd  States,  a^i  well  as  in  that  of  goods  sent  out  from 
tlie  United  States.  Nearly  tiie  whole  of  the  traffic  in  transitu 
of  the  Republic  in  these  six  years,  was  either  sent  from  cr 
sent  to  the  British  Provinces.  And  from  its  volume  in 
these  recent  years,  vve  may  form  some  idea  of  its  great 
extent  under  the  ojieration  of  the  treaty,  when  colonial 
facilities  for  transportation  were  po  different  from  what 
they  now  are. 

The  value  of  so  vast  a  carrying  trade  is  not  ensy  to 
arrive  at.  Dr,  Young,  the  able  chief  c^  the  United  States 
Bureau  of  Statistics,  recently  stated  that  inward  ocean 
freights  on  goods  "vary  from  100  per  cent,  on  [the  value 
of]  salt  and  some  other  bulky  articles,  to  two  or  three  per 
cent,  on  dr?ss  goods,"  and  that  the  "average  on  merchan- 
dise alone  is  not  much  less  than  eight  per  cent."  Now,  if  the 
ocean  freigbt  on  ordinary  merchandise  is  eight  per  cent, 
how  greatly  more  must  be  the  percentage  of  overland 
freights;  and  how  infinitely  greater  must  be  the  percentage 
on  the  value  of  farm  jiroduce  than  on  ordinary  merchandise? 
If  it  ?  further  co.isidered  that  on  the  transit  traffic  to  and 
from  Canada,  inland  and  ocean  carriage  have  both  to  be 
paid  for,  and  that  a  large  proportion  of  the  commodities 
are  heav}'  and  bulky,  it  will  at  once  be  seen  what  a  fertil- 
izing stream  is  poured  by  the  merchants  of  the  Dominion 
over  the  railways,  canals,  steamships,  commission  agents, 
and  port  cities  of  the  Republic,  even  from  the  limited 
share  of  their  traffic  now  sent  via  the  United  States,  under 
a  policy  of  severe  restriction. 


SPECIAL  PRIVILEGES  UNDER  THE  TREATY. 

Nor  was  it  merely  from  the  vast  interchange  of  commod- 
ities and  the  great  carrying  trade  in  bond  that  the  United 


10 

States  reaper!  thoir  golden  annual  harvest  from  the  Treaty 
of  1854.  It  must  not  be  forgotten  that,  by  virtue  of  that 
Treaty,  tha  Canadian  canals  and  the  navigation  of  the  St. 
Lawrence  were  thrown  open  to  the  ships  and  commerce  of 
the  United  States,  on  [»recisely  the  same  footing  as  to  those 
of  the  Canaoian  people,  who  had  spent  vast  sums  in  their 
construction.  How  largely  the  Republic  profited  by  this 
concession,  the  enormous  amount  of  American  merchan- 
dise passed  through  the  Canadian  canals  in  American  bot- 
toms, at  tolls  so  low  as  to  do  little  more  tlrui  defray  the 
cost  of  attendance  and  maintenance,  the  public  records  of 
both  countries  amply  establish.  The  sole  return  made  to 
the  Provinces  for  this  concession  was  the  permission  to 
navigate  Lake  Michigan,  and  the  promise  of  the  United 
States  Government  to  urge  upon  the  State  Authorities 
of  the  Republic  to  extend  to  the  Provinces  the  same  free 
use  of  the  American  canals  as  they  had  extended  to  the 
Repub'ic.     This  promise  never  bore  any  fruit. 


THE  ST.  LAWRENCE  COAST  FISHERIES  FREE  UNDER  THE  TREATY. 

But  the  crowning  concession  enjoyed  by  the  United 
States,  under  the  conditions  of  the  Reciprocity  Treaty  of 
1854,  was  the  free  use  of  the  priceless  coast  fisheries  of 
British  North  America.  For  this  concession  the  able 
statesmen  who  represented  the  thirteen  States  in  the  peace 
settlement  at  the  close  of  the  revolutionary  war,  struggled 
long  and  earnestly.  To  secure  this  much  valued  posses- 
sion, ail  the  skill  of  American  diplomatists,  persistently 
employed  for  three-quarters  of  a  century,  was  exerted  in 
vain.  Un.ier  the  treaty  o*"  1818,  the  right  to  the  sea-fish- 
eries of  the  Gulf  of  St.  Lawrence  was  resigned  to  the 
United  States;  but  not  until  1854,  and  then  only  as  part 
of  the  Reciprocity  Treaty,  and  terminable  with  it,  did  they 
ol>tain  access  to  the  most  valuable  portion  of  the  fisheries, 
namely,  those  within  three  miles  from  the  coast,  bays  and 
creeks  of  the  Provinces.  What  the  value  was  to  the  United 
State-  of  this  concession  it  would  not  become  us  to  discuss 
while  an  arbitration  to  determine  the  compensation  to  be 


h^ 


11 

paid  Canada  for  twelve  years'  further  enjoyment  of  it  is 
pending,  under  the  provisions  of  the  Treaty  of  Washing- 
ton. But,  iis  ilhistrative  of  tlie  enormous  prepon(Un*ance 
of  advantages  reaped  hy  the  United  States  under  the  Treaty 
of  1854,  we  may  perhaps  be  [termitted  to  quote  one  or  two 
extracts  from  the  reports  of  two  commissioners,  specially 
appointed  by  the  United  States  Goverrmient  to  incjuire 
and  report  on  the  subject  of  Reciprocity,  as  to  the  value  of 
this  one  item  in  the  balance  of  the  international  account: 

"  W'lltiout  iiarticipalion  iu  tlio  spa-fiphnrios  near  the  yhoros  of  tlie  colonies, 
our  i!<('|>  t^ua-nshei  (■?•,  in  lliat  rogion  will  hecoint-  valueless."  /.  D.  Andrews' 
Ei'port,  fiii.ye  35. 

"  Eii^lauil  |iossesso9  no  nuraoiy  for  seamen  at  all  equal  to  her  North 
Americ'an  colonial  traile."     Ihiil. 

"  Till;  avijrage  numher  of  French  seamen  engaged  in  tho  cod  fishery  [of  the 
Gulf  of  St.  Lawri-nceJ  from  1841  to  LS'iO  was  11,500,  and  the  average  bounty 
paid  iinnually  was  ;;,HOO,000  francs,  (fV.SO.OOO,)  equivalent  to  ^RY/o^.t  for  eacti 
seainiin.  France  iraina  up  in  this  manner  ahle  and  hardy  peamen  for  her. 
navy,  who  would  cost  the  nation  much  more  if  they  were  trained  on  ships  of 
"war."     Ibtd. 

"The  United  Stntes  tonnage  engaged  in  1862  in  the  cod  fishery  was  122,- 
803  tons,  in  tiie  niaekercl  fishery,  80  59(1  tons:  aggrej^^ate  203,459  tons.  The 
returns  of  fish  and  oil  from  this  tonnage  for  1862  considerably  exceeded  $14,- 
00'),000."     E.  11.  Derby,  page  42. 

"Sranien  (United  States)  in  fisher  is  in  1862,  28,048.  *  *  *  The  fish- 
eries break  in  at  hiast  5,000  new  seamen  annually.  ■*  *  *  Six  hundred 
sail  have,  in  a  single  season,  fished  for  mackerel  in  the  Guif  of  St.  Lawrence 
and  Bay  of  Chaleur,  and  taken  fish  to  the  amount  of  |4,500,000.  *  *  * 
Nearly  une  fourth  of  our  fishing  lleet,  with  a  tonnage  of  40,000  to  50,000  tone, 
worth'  .•j;5,000,000  to  $7,000,000  annually,  fish  near  the  three-mile  line  of  the 
Frovince.s."     Ihtd.,  p.  44. 


REPEAL  OF  THE  TREATY. 

Such  was  the  Treaty  of  1854,  whicli  the  United  States 
terminated  in  1866,  on  the  ground  that  the  advantages 
from  it  were  all  on  the  side  of  the  Provinces,  and  against 
the  Republic.  Well  might  the  Commissioner  of  the  United 
States  Treasury,  (Mr.  Derby,)  writing  regretfully  of  the 
repe.d,  use  these  words:  "It  quintupled  our  trade  with  the 
Provinces,  gave  an  impulse  to  public  improvement,  and 
utilized  the  new  canald,  railways,  and  other  avenues  of 
commerce."  And  he  might  as  truly  have  added:  "Had 
the  Pro\inces  retaliated  in  the  same  spirit,  it  would  have 
lost  us  the  enjoyment  of  the  shore  fisheries  of  the  maritime 
provinces,  the  use  of  the  Canadian  canals,  and  the  naviga- 


12 


tion  of  the  St  Lawrence  river,  all  of  which  we  enjoyed 
without  consideratiot.." 

Fortunately  the  Provinces  did  not  act  in  the  same  spirit. 
They  thoroughly  believed  in  the  pra<jtical  good  sense  of 
the  United  Slates  people — especially  with  such  a  balance 
sheet  to  look  back  upon  as  the  results  of  the  Treaty  of  1854 
present.  They  assumed  that  there  were  matters  existing 
in  1865-'66  to  trouble  the  spirit  of  American  statesmen 
for  the  moment,  and  they  waited  patiently  for  that  sober 
second  thought  which  was  sure  ere  long  to  put  all  things 
right. 

Immediately  on  the  repeal  of  the  Treaty,  customs  duties 
were  imposed  by  the  United  States  on  nearly  all  the  articles 
imported  under  it  from  the  Provinces.  The  Canadian 
tariff  was  very  little  changed,  and,  is  will  be  presently 
shown,  a  large  preponderance  of  the  exports  from  the 
United  States  into  the  Dominion  are  still  admitted  free  of 
<luty.  The  use  of  the  Canadian  canals  was  continued  to 
American  shipping  and  conmierce  on  precisely  the  same 
terms  as  to  those  of  Canada.  The  free  navigation  of  the 
river  St.  Lawrence  was  stili  left  open  to  American  craft,  and 
the  shore  fisheries  of  the  St.  Lawrence  were  thrown  open 
from  year  to  year  to  American  fishermen,  on  payment  of 
a  small  license  fee. 


EFFECT  IN  CANADA  OF  THE  ABROGATION  OF  THE  TREATY. 

The  industry  of  Canada  had  been  largely  directed  to  the 
supply  of  the  American  market  with  commodities  for  home 
consumption,  as  well  as  for  foreign  exportation,  and  the 
repeal  in  1866  of  the  Reciprocity  Treat}^  under  which  so 
vast  a  trade  had  grown  up,  rendered  imperatively  necessary 
prompt  measures  to  open  new  markets  for  the  sale  of  Can- 
adian produce.  These  measures  were  at  once  takea.  Under 
the  influence  of  the  formal  notice  given  by  the  United  States 
in  1865,  of  their  intention  to  terminate  the  Treaty,  federa- 
tion of  the  Provinces,  then  under  discussion,  was  hurried 
on,  and  became  a  fait  accompli  within  fifteen  months  after 
its  repeal.     The  Intercolonial  railway  was  at  once  under- 


18 


liince 


taken ,  at  a  cost  of  over  $20,000,000,  at  the  national  expense, 
to  secure  direct  cojinection  to  aiid  from  tlie  Atlantic  t)cean, 
at  Ilalifiix  and  St.  John,  on  Canadian  8oil;  and  the  last  sec- 
tion of  that  road  will  shortly  he  opened  for  traffic.  Com- 
missionera  were  despatched  to  the  IJritish  and  other  West 
India  inlands,  and  to  South  American  States,  to  promote 
the  extension  of  direct  trade  hetween  them  and  the  Domin- 
ion. The  enlargement  of  the  canals,  the  iniprovement  of 
the  navigation  of  the  lakes  and  river  St.  Lawrence,  the  con- 
strnction  of  the  Bay  Verte  canal,  to  connect  the  waters  of 
the  Bay  of  F'lndy  iind  the  St.  Lawrence,  the  eubsidizing  of 
ocean  and  river  steamship  lines,  and  the  promotion  of  the 
great  ship-bnilding  and  fishery  interests,  all  received  a  new 
and  vigorous  impetus. 

These  measures  were  uttended  with  remarkable  success. 
Only  seven  fiscal  years  have  passed  since  the  repeal  of  the 
Treaty,  but  already  the  loss  inflicted  by  it  has  been  more 
than  made  up,  and  excellent  outlets  in  new  directions 
opened  for  Canadian  commerce;  with  an  increasing  annual 
proportion  of  the  vast  carrying  trade  formerly  done  for  the 
Province^i  by  the  railways,  canals,  and  steamships  of  the 
Republic,  transferred  to  Canadian  hands.  The  trafKc  be- 
tween the  United  States  and  the  Provinces  at  once  fell, 
from  an  average  during  the  three  years  before  the  rei)eal, 
(according  to  American  official  statistifes,)  of  nearly  $76,- 
000,000  per  annum,  to  an  average  of  $57,000,000  per  annum 
during  the  first  three  years  following  repeal; — the  act  of 
confederation,  too,  removed  from  the  category  of  Foreign 
Commerce  to  that  of  Home  Consumption,  the  large  inter- 
changes of  commodities  between  the  several  sectioud  of 
the  Dominion;  and  the  aggregate  foreign  commerce  of  the 
Provif'.ces  consequently  fell  in  the  fir.it  year  after  the  re- 
peal of  the  Treaty  to  $139,202,615  from  $160,409,455  in  the 
previous  year.  As  will  be  seen  from  the  following  state- 
ment, however,  the  trade  of  the  Dominion  speedily  recov- 
ered from  the  blow,  and  the  volume  of  its  Foreign  Com- 
merce gradually  increased  until,  in  the  seventh  year  from 
the  repeal  of  the  Treaty,  it  reached  the  great  sum  (for  a 


ii 


^1 


14 

people  of  four  niillions)  of  $235,301,203, — being  sevonty- 
five  millions  higher  than  it  had  ever  reached  in  any  year 
of  the  treaty's  existence: 

1867.  Total  exports  and  imports  of  Canada 

and  Newfoundland - -  $139,202,615 

1868.  "                       ". 1.39,59,3,615 

1869.  "                        "    142,240,897 

1870.  "                        "     161,275,538 

1871.  ''                        "    184,852,006 

1872.  "                        "    205,339,943 

1873.  «                        "    235,301,203 

Total  Foreign  Commerce  in  seven  years.-  $1,207,807,817 

INJURIOUS  EFFECT  OF  REPEAL  ON  UNITED  STATES  TRADE. 

The  traffic  between  the  United  States  and  the  Dominion 
Btill  retained  large  proportions,  notwithstanding  the  bar- 
riers now  raised  against  it.  The  aggregate  imports  and 
exports  which  immediately  before  the  repeal  had  been 
(according  to  the  United  States  returns)  $67,909,162  in 
1864,  $71,374,816  in  1865,  an.d  $84,070,955  in  1866,  fell 
immediately  after  the  repeal  to  $57,927,347  in  1867, 
$56,624,493  in  1868,  and  $56,287,546  in  1869.  But  there 
the  falling  off  stopped.  The  volume  of  traffic  then  began 
steadily  to  reascend,  and  reached  $67,939,125  in  1870, 
$71,927,077  in  1-S71,  $73,720,512  in  1872,  and  $82,381,626 
in  1873, — or  within  two  millions  of  dollars  of  the  highest 
point  reached  during  the  Treaty's  operation.  The  aggre- 
gate traffic  between  the  countries  in  the  seven  fiscal  years 
since  repeal  was  $466,807,726. 

But  large  as  this  volume  of  trade  is,  it  is  instructive  to 
observe  how  small  a  proportion  of  the  foreign  commerce 
of  Canada  this  now  forms,  in  comparison  with  the  share  of 
it  enjoyed  by  the  United  States  while  the  Treaty  was  in 
operation.  During  its  thirteen  years'  existence  the  aggre- 
gate exchange  of  commodities  between  the  countries  aver- 
aged 46  per  cent,  of  the  entire  Foreign  Commerce  of  the 
Provinces;  and  in  its  last  year  the  average  had  reached 


15 

not  IcRs  than  52i  i>er  cent,  of  their  entire  commcrcG.     But 
since  tlie  repeal  the  case  is  totally  altered.     The  propor- 
tion of  the  furoi<z;n  ooninieree  of  Canada  transacted  with 
the  United  States  from  521  per  cent,  in  1800,  fell,  in  1807, 
to  42  per  cent.;  in  1808,  to  41  per  cent.;  in  1800,  to  40 
per  cent.;   in   1870,  to  42  per  cent.;    in  1871,  to  40  per 
cent.;    in  1872,  to  30  per  cent.;    and  in  1878,  to  35  per 
cent.     Tiie  average  proportion  of  the    cdmnierce  of  the 
Provinces  has  been  since  the  repeal   but  38A   per  cent., 
against  nearly  50  per  cent,  in  the  last  live  years  of  the 
Treatv.     Had  the  Treaty  not  been  abrogated  in  1800,  and 
the  percentage  of  Canadian  traffic  with  the  States  risen 
no  liigher  than  it  did  under  the  Treaty,  the  interchange  of 
commodities  between  the  countries  in  tlie  last  seven  years 
would  have  aggregated  six  hundred  millions  of  dolhirs. 

CHANGED  CHARACTER  OF  THE  TRAFFIC  SINCE  REPEAL. 

But  it  is  not  only  in  the  dimunition  of  commerce  that 
the  United  States  have  sutiered  by  the  abrogation  of  the 
Treaty.  The  changed  character  of  the  traffic  now  carried 
on  between  the  countries,  in  comparison  with  that  formerly 
done,  is  also  worthy  of  attentive  observation.  For  ex- 
ample, the  consumption  of  Lumber  throughout  the  lie- 
public  increases  enormously  every  year,  and  indeed  all 
over  the  world.  The  home  supply  of  it  in  the  United 
States  is  fast  disappearing;  prices  go  up  steadily;  and  here 
is  the  result,  since  the  repeal  of  the  Treaty,  on  the  IJnited 
States  purchases  from  Canada,  of  that  one  article: 

1800-7.  Lumber  exports  to  United  States ^$0,437,800 

18(5'T_>g_  u  «  0,727,000 

180d-'9  *  "  "  1,208,440 

1309-'70.  «  "  8,070,702 

1870-'l.  ''  "  8,204,837 

1871-2.  "  "  8.410,917 

1872-'3!  "  "  11,134,956 

•This  sreat  reduction,  we  assume,  arose  from  the  expeelatiouof  the  lowering  of  the 
duty  on  lumber,  which  went  into  force  the  following  year. 


16 

And  the  prices  of  lumber  go  up  in  prompt  sympathy 
with  tlie  increasing  demand,  for  the  benefit  of  the  himber 
operators,  who  are  in  no  need  of  sympathy  in  Canada, 
whatever  they  may  be  in  the  United  States,  but  to  the  in- 
jury of  numerous  branches  of  industry  in  which  wood 
forms  an  important  element,  and  to  the  serious  embar- 
rassment of  agricultural  operations  on  prairie  and  other 
lands. 

And  so  it  is  with  fish,  barley,  peas,  wool,  hides,  sheep, 
horses,  and  other  articles  of  Canadian  production,  which 
cannot  easily  be  got  elsewhere.  The  den)and  from  tlie 
United  States  is  good  and  constant,  notwithstanding  the 
custom-house  barriers,  and  the  prices  keep  steadily  up. 


I 

1  :i 


TRAFFIC  DRIVEN  FROM  UNITED  STATES  CHANNELS. 

But  in  regard  to  wheat,  flour,  provisions,  and  other  arti- 
cles of  which  the  United  States  have  a  surplus  as  well  as 
Canada,  the  effect  of  tie  duties  upon  them  has  been  to 
send  through  Canadian  channels,  direct  to  the  maritime 
Provinces,  the  W  est  Indi'  Islands  and  Great  Britain,  a  vast 
amount  of  products  that  were  formerly  sold  to  New  York 
and  Boston  houses,  and  shipped  to  these  same  markets 
through  American  channels.  Where  two  countries  along- 
side of  eajh  other  have  each  a  large  annual  surplus  of  the 
same  arti«jle,  and  that  article  is  in  world-wide  demand, 
heavy  duties  against  each  other  can  hardly  be  effective. 
The  stuff  will  find  its  way  to  market  by  some  route  or 
other. 

CANADIANS  NOW  LARGE  EXPORTERS  OF  WESTERN  PRODUCTS. 

The  change  in  the  other  side  of  the  account  is  equally 
instructive.  The  imports  of  domestic  productions  t)f  the 
United  States  (as  distinguished  from  foreign  productions) 
into  Canada,  in  the  four  years  previous  to  the  abrogation 
of  the  Treaty  averaged  $28,131,802  annually;  but  on  its 
abrogation  they  immediately  fell  to  $20,548,704  in  1867; 
and  though  they  have  since  gradually  recovered,  so  that  the 
imports  of  the  last  seven  years  have  averaged  $25,649,349 


17 

per  amuim,  this  was  duo,  not  to  a  demand  for  home  con- 
Humpti(m,  but  to  the  increasing  carrying  trade  of  the  Do- 
minion witli  foreign  countries.  The  necessity  of  direct 
intercourse  with  foreign  markets  for  Canadian  products, 
forced  on  Canadian  merchants  liy  the  repeal  of  the  Treaty, 
led  on  to  a  considerable  traffic  with  those  markets  in 
American  domestic  products;  hence  we  find  in  the  im- 
ports of  Canada  from  the  United  States  in  the  last  four 
years,  such  items  as  the  following: 

1871-72.  1872-73. 

Meats— fresh,  stilted  and  smoked,  $1,047,272      $1,227,870 

Swine-- 612,606         1,265,813 

Flour  and  meal - -     2,604,644        2,505,581 

Indian  corn - -     3,778,256        4,360,854 

Wheat- - - 4,450,404        6,894,247 

$12,493,082    $16,254,365 

Large  portions  of  these  articles  were  purchased  for  for- 
eign exportation,  either  in  the  raw  state  or  after  being 
manufactured  in  Canada.  The  general  progress  of  this 
trade,  though  not  consisting  solely  of  American  products, 
is  pretty  well  indicated  by  the  following  oflScial  returns: 

1868.  Exports  of  foreign  goods $4,196,821 

1869.  "  "  "     —  3,855,801 

1870.  "  «  "      -— _-_  6,527,622 

1871.  "  "  '■     — 9,853,033 

1872.  "  «  "     .._.  12,744,125 

1873.  "  »'  "      9,405,910 

Total  in  six  years $46,583,312 

The  home  consumption  of  American  domestic  products 
in  the  Canada  market  has  therefore  largely  decreased 
since  the  repeal  of  the  Reciprocity  Treaty. 

BALANCE  OF  TRADE  NOW  LARGELY  AGAINST  THE  REPUBLIC. 

But  the  most  remarkable  effect  of  the  abrogation  of  the 
Reciprocity  Treaty  was  the  immediate  change  it  produced 
2 


lit 


m 


18 

in  the  balance  of  tnub^  botween  tbo  countries.  From  the 
year  1820  up  to  18CC,  a  term  of  fort^'-six  years,  there  were 
only  (according' to  the  United  States  lletiiniH)  five  years  in 
whicli  the  innual  transactions  between  the  Kepublic  and 
the  Provinces  did  not  show  a  large  cash  balance  against 
the  Provinces.  But  four  of  these  five  exceptions  were 
merely  the  result  of  War  prices  and  the  overvalnation 
usual  in  Free-entries.  The  entire  interchange  of  traffic, 
from  1820  to  1866  showed  a  cash  balance  in  favor  of  the 
United  States  of  $195,219,272.  But  this  state  of  things 
came  to  a  sudden  end  with  the  expiration  of  the  Treaty; 
and  the  balances  in  favor  of  the  Dominion  have  since  been 
as  follows: 

In  1866-'67 — - -  $9,281,009 

1867-'68 4,099,949 

1868-'69 --  7,893,082 

1869-70 14,240,477 

1870-71  -- - 2,921,625 

1871-72 - - 8,202,352 

1872-73 ---  5,236,514 

Total  balance  against  U.  S.  in  seven  years.  $51,875,008 

DIVERSION  OF  TRAFFIC  FROM  UNITED  STATES  OCEAN  PORTS. 

There  is  still  another  feature  of  the  changed  relations 
between  the  countries  well  worthy  of  special  note.  The 
time  was  when  the  merchants  of  New  York  and  Boston 
controlled  a  large  pro})ortion  of  the  import  and  export 
traffic  of  the  British  I'rovinces;  but  that  time  passed  away 
with  thelieciprocity  Treaty.  Customs-duties, custom-house 
restrictions  and  examinations,  consnirt'  certificates,  and 
bonding  entries  and  charges,  with  all  i  heir  annoyances  and 
delays,  have  acted  severely  against  the  traffic  of  these  Ports 
in  Canadian  products,  and  the  railways  and  canals  leading 
from  them,  and  forced  the  business  into  more  northern 
channels. 

Mr.  E.  H.  Derby,  Special  Commissioner  of  the  Treasury, 
iu  his  official  report  to  Mr.  McCulloch  of  Ist  January,  1866, 


19 

(pftsje  81,)  niakoH  this  Htaleiuont:  "Tlu^commorco  of  IJurtton 
aircctcd  l>v  the  Reciprocity  Treaty  cxccfils  $J7,0(M),()l)<)  uii- 
mially,  iiamuly:  Imports  froiu  and  cxiM»rts  to  the  Maritime 
J'roviiuM'fl,  :!?fj,000,00<);  oiittit"!  ami  returiM  in  (li'cp-.sca  ThIi- 
orioH,  §11,000,000;  imports  of  wool,  L'raiii,  and  animals 
ar-ross  the  frontici-  of  (<anada,  and  entered  there,  with  re- 
turtiM,  at  least  810,000,000."  We  have  no  f.ersonal  knowl- 
ed<^e  as  to  the  accuracy  of  this  estiniate,  hut  no  hetter 
authority  on  the  point  than  Mr.  Derhy  coidd  he  (hsired. 
]iut  if  this  WMH  the  aimu;*!  interest  of  one  United  iStatoa 
Port  atfcetod  hy  the  Treaty  in  186^!,  when  the  entire  annual 
foriM^n  commerce  of  the  Province  was  little  more  than  u 
liundred  millions  of  dollars,  how  shall  the  gain  of  five  or 
six  millions  to  the  U.  8.  treasury,  levied  on  such  neces- 
saries of  life  as  beef,  fhmr,  coal,  lumher,  &c.,  compensate 
the  loss  of  driving  away  from  the  great  marts  of  the  Re- 
public the  lion's  share  of  a  tratfic  already  amounting  to 
two  hundred  and  thirty-tive  millions  per  annum? 

CUMI'AIUTIVK  IMl'ORTANCK   OF  CANADIAN  TRAFFIC   IN  Sl'ITK  OF 

RK8TK1CT10NS. 

Put  with  all  these  harriers  and  drp.wbacks  in  the  way  of 
natural  and  easy  traffic,  it  is  in  the  highest  degree  instruc- 
tive to  observe  how  important  the  commercial  transactions 
between  the  Republic  and  Canada  remain,  even  now,  in 
oorni»arisou  with  those  between  the  United  States  and 
countries  more  renioto.  Permit  us  to  analyze  the  expm't 
traflic  of  the  United  States  for  the  fiscal  year  ending  30th 
June,  1872,  in  order  to  show  this,  hi  that  year  tlie  entire 
export  traffic  of  the  J\op!d)lic  with  foreign  countries,  in- 
cluding the  trade  in  transitu,  was  as  follows: 

Of  home  products $549,210,718 

Of  foreign  products 22,760,749 

Of  foreign  products  in  transitu  over  the  rail- 
ways, &c.,  of  the.  United  States  to  foreign 
countries-- 31,385,320 

Total  U.  S.  export  traffic,  1871-72-- $603,374,787 


III'!; 


20 

Of  this  vjiHt  trnflic,  Great  Brituiii  niid  Iior 

ColonioH  (oniittinj^  Canada  and  Newfound-  . 

land)  took  from  the  United  States — 

Of  liome  products -  1^329,224,701 

Offoreifrii  products 8,844,872 

Of  L'oods  m  tmnsilu..-.. 3,420,332 

341,489,005 

Kernaininp^  export  trailie - ^201,884,882 

Of  this  remaining  tratHc,  the  British  North 

American  Provinces  took — 

Of  home  products-- $27,774,091 

Of  foreign  products 4,984,989 

Of  goods  in  tramitu 24,098,114 

Total,  13.  N.  A.  Provinces-—  $56,857,194 

Germany  took 43,483,003 

France  and  her  possessions 34,704,730 

Spain  and  her  possessions 27,577,792 

$162,622,719 

And  all  the  rest  of  the  world —-    $99,262,163 

From  these  figures  it  will  be  seen  that,  in  the  year 
1871-'2,  Great  Britain  and  her  colonies  (including  Canada) 
took  over  66  per  cent,  of  the  entire  export  trafiic  of  the 
Unit<'d  States,  and  all  the  rest  of  the  world  but  34  per 
cent. 

It  will  al'-o  be  seen  that,  in  that  year,  the  Canadian  Do- 
minion an(  A'foundland  took  $13,874,191  more  of  the 
export  tn  .  United  States  than  did  any  country  in 

the   worla  3  the  British   Empire;    that   she   took 

$22,152,464  ,:'eof  it  than  France  and  all  her  possessions, 
and  more  than  double  the  amount  taken  by  Spain  and  all 
her  possessions. 

A  farther  analysis  of  the  foreign  commerce  of  the  United 
States  shows  that,  in  the  same  year,  the  export  traffic  from 
the  United  States  to  the  Dominion  exceeded  the  entire 
exports  of  the  United  States  to  the  Chinese  Empire,  the 
Russian  Empire,  Brazil,  Mexico,  Italy,  Japan,  Hayti,  Ven- 


31 

ezuehi,  DiMiiniirk  iiiid  lu-r  ixmst'ft.sions,  Chili,  I'ortnpil  aiul 
her  posHOHsioiis,  the  CV'iitral  Ainericiin  Statofl.  tho  Austrian 
Eiiijiire,  the  Arguntiuo  Uopuhlic,  tlio  Tuikinh  Ijnpir*%  the 
Suiidwich  I^hinds,  Sweden,  Xijrway,  Lihoriji  and  (Jieeee, 
all  i»ul  together.  Tho  total  export  tiallio  of  the  Tnited 
States  to  thene  twent}'  countries,  in  home  produ'its,  ft>ri'i«^n 
j^oodrt  and  <^oodrt  in  trdiisitti^  heint^  |oG,G(5ti,3r»l),  while  that 
to  Canada  was  $r)G,867,194. 

A  continued  analynis  ot'tho  United  States  oflitial  Kelurns 
shovvrt  that,  while  C^ainida  in  1871-'2  thuH  swt'lled  the  ex- 
port riales  of  the  domestic  and  foreign  grodu  of  the  United 
States,  and  the  carrying  trade  of  tlieir  ocean  fleet  and  rail- 
ways and  canals,  to  an  equal  extent  witli  the  ahove  twenty 
countries,  the  United  States  took  that  year  from  (^anada, 
in  return  hut  840,961,432,  of  which  34,614,502  was  gold 
and  silver,  $1,180,790  goods  of  United  States  production 
returned  to  the  States  from  Canada,  and  $691,299  etlects  of 
immigrants  passing  through  Canada  into  the  United  States. 
But,  on  the  other  hand,  while  the  twenty  countries  ahove 
named  took,  as  ahove  stated,  hut  $56,603,359  of  the  export 
traffic  of  the  United  States,  their  import  traffic  inti»  the 
United  States  was  no  less  than  $108,377,613 — of  which 
only  $7,218,620  was  gold. 


COMPARATIVE    DUTIES   IN   THE  UNITED  STATES  AND  DOMINION. 

Again:  of  the  entire  purchases  hy  Canada  from  the 
United  States  in  1871-'72  of  home  and  foreign  products, 
(excluding  the  traffic  in  transita  from  the  comparison,)  arti- 
cles to  the  value  of  $20,710,532  were  admitted /?'<;£!  of  duty , 
and  only  on  $12,018,548  was  any  duty  paid.  The  total 
amount  of  duty  levied  was  $2,216,215,  or  an  average  per 
centage  on  Canaila's  entire  importations  from  the  States 
(free  and  dutiable)  of  that  year,  of  only  6f  per  cent.  On 
the  other  hand,  of  the  purchases  by  the  United  States  from 
Canada  in  the  same  year,  the  articles  admitted  free  of  duty 
were  to  the  value  of  but  $9,329,881,  and  those  subjected  to 
duty  $31,631,551.  Indeed,  as  there  were  included  among 
the  free  importations  $4,619,502  of  gold  and  silver  coin  and 


Ifil 


I     P:' 


If 


I* 


\l 


22 

bullion,  91,180,790  of  United  States  profliictions  returned 
to  the  States,  aiul  5^686,800  of  effects  of  iminigr.ints  passing 
through  Canada  into  the  States, — the  free  importations  of 
merc>iandise  from  Canada  by  th(^  Jnited  States  were  in 
reality  but  $2,842,789,  against  $31,631,555,  on  which  cus- 
toms duties  were  levied  to  somewhere  about  25  per  cent, 
on  the  entire  importations  of  the  year. 

SAME  FACTS  DEMONSTRATED  IN  1873. 

And  the  same  state  of  things  is  found  in  the  year  ending 
30th  June,  1873.  The  declared  value  of  the  entire  export 
trafHc  of  the  United  States  with  foreign  countries  was  as 
follows: 

Of  home  products -  8049,132,503 

Of  foreign  products -       28,149,511 

Of  foi'cign  products  passing  in  'rans'du  over 
tlu^  railways  and  canals  of  the  States  to 
fo'-eign  countries 40,099,185 

Total  United  States  expo^ traffic  187?-'73,  $706,949,259 

Of  this  vast  export  traffic  Great  Britaiii 
and  liev  colonies  received  from  the  United 

States: 

Of  home  products $420,939,283 

Of  foreign  products 18,639,171 

Of  foreign  goods  brouglit  over 
the  railways  and  canals    of 

the  States 33,071,529 

472,049,983 

Balance  to  the  rest  of  the  world $234,299,276 

Of  the  above  great  amount  of  traffic  tak<cn  from  the 
United  States  by  Great  Britain  and  her  colonies  Canada 
took: 

Of  home  products $34,368,811 

Of  foreign  products 4,203,745 

Of  goods  imported  over  the  railways  and  canals 
of  the  United  States 26,784,184 


'g 


28 

Total  export  traffic  of  the  United  States  to 

Canada - $65,366,740 

Germany's  fliare  was $68,724,421 

France  and  her  possessions  took 36,083,266 

Spain  and  lier  possessions  took - --  29,257,121 

And  all  the  rest  of  the  world  took--- 100,234,468 

Great  Britain  and  her  possessions,  therefore,  took  67  per 
cent,  of  the  entire  export  traffic  of  the  United  States  for 
1872-3,  and  all  the  rest  of  the  world  but  33  per  cent. 

With  the  exception  of  Germany,  (whose  traffic  exceeded 
that  of  the  Dominion  by  only  ^3,307,681,)  Canada  in  this 
year  was  the  largest  customer  of  the  United  States  outside 
the  British  Empire.  She  took  829,273,470  of  United 
States  export  traffic  more  than  was  taken  by  France  and 
her  possessions;  more  than  double  what  was  taken  by 
Spain  and  her  possessions;  and  niore  than  the  Russian 
Empire,  Japan,  Italy,  Brazil,  Mexico,  Hayti,  Peru,  the 
Argentine  Republic,  Venezuela,  Sweden,  Norway,  Den- 
mark and  her  possessions.  Chili,  China,  Uruguay,  the  Aus- 
trian Empire,  the  Turkish  Empire,  the  Central  American 
States,  Portugal  and  her  possessions,  the  Sandwicl;  Islands, 
Liberia  and  Greece  all  put  together.  These  twenty-two 
countries  took  in  all  ^64,901,145  of  the  export  traffic  of 
the  United  Stales,  of  which  $12,397,315  was  gold,  while 
Canada  alone  took  $65,356,740,  of  which  only  $4,269,181 
was  gold. 

On  the  other,  hand  the  United  States  in  the  same  year 
imported  from  Canada  but  $43,809,070,  of  which  $6,159,- 
538  was  gold,  $1,211,155  products  of  the  United  States 
iK>tunied  from  Canada  to  the  States,  and  $729,985  effects 
of  immigrants  passing  through  Canada  into  the  United 
States.  The  actual  importation  of  Canadian  merchandise 
was  theretore  but  $35,708,392,  while  the  twenty-two  coun- 
tries above  nam'^d,  whoso  share  of  the  United  States  ex- 
port traffic  of  the  year  was  but  $64,901,145,  including  gold, 
or  $52,593,830,  excluding  it,  sent  into  the  United  States  in 
the  same  year  no  less  than  $131,101,423,  of  which  but  $2,. 


24 


104,393  Wcas  gold.  The  "balance  of  trade"  for  the  years 
1872-'3,  therefore,  was  ^52,593,830  of  export  traffic  from 
the  United  States  into  these  twenty-two  countries,  and 
$128,997,030  of  imports  into  the  United  States  from 
them,— or  $70,303,200  against  the  United  States. 

And  the  contrast  is  even  more  marked  when  the  United 
States  eustoms-duties  on  Canadian  products  are  compared 
with  those  on  the  products  of  other  coi.  'tries  whose  com- 
merce is  of  infinitely  less  moment  than  that  of  Canada.  In 
the  year  1872-73,  of  the  $35,708,392  of  merchandise  im- 
ported by  the  United  States  from  Canada,  only  $4,334,285 
was  admitted  free  of  dut  ;•,  and  on  the  remaining  amount 
of  $31,374,107  duties  were  levied  to  somewhere  about  25 
per  cent,  on  the  entire  importations  from  Canada  of  that 
year.  Canada,  on  the  other  hand,  on  her  importations 
from  the  United  States  tiie  same  year,  admitted  merchan- 
dise to  the  value  of  $22,016,690  entirely  free  of  duty,  and 
levied  duties  on  only  $16,555,866,  to  the  amount  of  but 
$2,923,795,  or  8|  per  cent,  on  the  entire  importations  of 
merchandise  for  the  year.  How  different  was  it  with  the 
twenty-two  countries  above  named.  Of  their  importations 
into  the  United  States,  $102,501,338  were  received  free  of 
duty,  and  only  on  $29,200,085  was  any  duty  charged. 

It  is  not  for  us  to  criticise  in  any  way  XAe  manner  in 
which  the  United  States  choose  to  impose  tbeir  duties.  We 
merely  mention  these  things  to  remind  you  of  the  disad- 
vantageous position  Canada  occupies  in  her  transactions 
with  the  Republic,  in  comparison  with  that  of  other  coun- 
tries whose  transactions  are  not  to  be  compared  in  extent 
or  profit  with  those  of  the  British  Provinces. 


When,  with  ,  a  these  facts  before  them,  Her  Majesty's 
Advisers  invite  the  Government  of  the  United  States  to 
reconbider  the  whole  commercial  relations  of  the  Republic 
and  the  Dominion,  with  a  view  to  placing  them  on  a  friendly 
and  durable  basis  of  reciprocal  advantage,  the  question 


26 


naturally  presents  itself,  how  it  conies  that,  having  pros- 
pered 80  well  since  the  repeal  of  the  Keciprocity  Treaty  of 
1854,  Canada  now  seeks  for  its  restoration.  The  answer 
is  as  natural  as  the  question.  The  population  of  the  United 
States  is  forty  millions,  and  that  of  the  Dominion  is  but 
feur  millions.  The  boundary  between  them  is  for  the  most 
part  but  a  surveyor's  line,  often  unknown  even  to  those 
who  live  beside  it;  and  it  is  of  the  utmost  importaiice  to 
Canada  that  common  interests  and  mutual  good  will  should 
exist  between  the  countries.  And  what  so  conducive  to 
this  end  as  commftvcial  intercourse,  generously  carried  on 
and  mutually  profitable?  The  people  of  Canada  are  not 
ignorant  that  a  market  near  at  hand  is  better  than  a  dis- 
tant one;  and  good  as  their  present  markets  are,  they 
would  gladly  have  the  old  one  in  addition.  They  com- 
prehend the  barrier  that  custom-house  restrictions  throw 
in  the  way  even  of  the  existing  traffic;  and  they  seek  to 
have  these  withdrawn.  They  are  proud  of  their  own  St. 
Lawrence  route,  and  intend  to  improve  it  to  the  uttermost 
for  the  benefit  of  the  great  West  and  their  own ;  but  would 
gladly  use  the  Ocean  Ports  and  other  channels  of  commerce 
of  the  Republic,  when  freights  and  fares  and  friendly  reci- 
procit}'  draw  them  in  that  direction.  And  very  great  aa 
have  been  the  advantages  always  accruing  to  the  United 
States  from  reciprocity,  the  Canadians  can  find  only  cause 
of  hearty  rejoicing  at  that,  so  long  as  they  themselves  con- 
tinue to  enjoy  that  moderate  degree  of  prosperity  with 
which  Providence  has  blessed  them.  There  is  no  mystery, 
no  arriere  pensce,  in  their  desire  that  the  commercial  rela- 
tions of  the  Republic  and  the  Dominion  should  be  placed  on 
the  most  kindly  and  unfettered  and  mutually  advantage- 
ous basis  consistent  with  their  respective  existing  obliga- 
tions, and  with  that  connection  with  Great  Britain  which 
the  Dominion  so  happily  enjoys. 

It  was  with  these  views,  and  in  this  spirit,  that  the  Can- 
adian Administration  availed  itself  of  the  opportunity 
presented  by  the  twenty-second  Article  of  the  Treaty  of 
Washington  to  represent  to  Iler  Majesty's  dovernmeut  the 


26 

advantage  that  would  accrue  to  both  countries  by  the  sub- 
stitution of  a  satisfactory  Commercial  Treaty  in  lieu  of  the 
money  compensation  to  be  paid  (under  arbitration)  by  the 
United  states,  for  twelve  years'  enjoyment  of  the  coast 
iisiieries  of  the  Dominion.  It  was  felt  that  if  the  large 
value  placed  by  the  Canadian  people  on  their  Fisheries 
were  not  reasonably  compensated  by  the  results  of  the  ar- 
bitration, a  feeling  of  dissatisfaction  might  be  engendered 
in  the  Provinces,  not  conducive  to  international  harmony; 
and  that  if,  on  the  other  hand,  an  award  were  made  equal  to 
the  contidentanticipatit)n8of  the  Provinces, the  good  feeling 
restored  in  the  United  States  by  the  Treaty  of  Washington 
might  be  sensibly  impaired.  To  merge  the  i^atter  in  a 
general  measure  of  mutual  commercial  co:  ;e88ion,  for  the 
mutual  advantage  of  both  parties,  and  with  injury  or  in- 
justice to  neither,  seemed  the  fitting  conclusion  to  be  ar. 
rived  at  by  the  Governments  of  1\vo  great  nations. 

Her  Majesty's  Ministe "S  were  pleased  to  adopt  the  sug- 
gestion of  the  Canadian  Government,  and  the  matter  having 
been  brought  under  the  attention  of  the  Secretary  of  State, 
and  through  you.  Sir,  to  the  notice  of  the  President  of  the 
United  States,  a  friendly  response  was  at  once  received, 
and  the  necessary  measures  instituted  foi  opening  formal 
negotiations. 


In  the  interview  which  we  had  the  honor  to  be  favored 
with  by  you  at  the  State  Department,  on  the  28th  March, 
we  stated  to  you  that  lici-  Majesty's  Government  was  pre- 
pared to  accept  a  renewal  of  the  Reciprocity  Treaty  of 
1854  as  a  substitute  for  the  arbitration  provision  of  the 
Washington  Treaty,  in  reference  to  the  Canadian  Coast 
Fisheries. 

You  thereupon  suggested  an  enlargement  of  the  scope 
of  the  Treaty,  and  we  asked  in  what  manner  you  would 
propose  to  enlarge  it. 

You  replied  that  you  had  no  proposition  to  make,  but 
that  you  suggestetl,  as  topics  for  discusslo'.v  the  enhwge- 
ment  of  the  Canadian  canals,  so  as  to  facilitate  the  trans- 


27 


but 


portation  of  tlie  proilncts  of  the  great  AVostcrn  States  to 
the  Atlantic  seaboard;  and  also  the  addition  of  certain 
chisses  of  manufactures  to  the  free  list  of  the  old  Treaty. 

We  then  stated  that  we  were  prepared  to  enter  into  an 
agreement  for  the  enlargement  of  the  Canadian  eanids. 

In  regard  to  the  addition  of  certain  classes  of  manufac- 
tnres  to  the  free  list  under  the  old  treaty,  we  reminded 
you  that  the  revenue  of  the  Canadian  Dominion  was 
largely  obtained  from  a  fifteen-per-cent.  ad  valorcmdniy  on 
manufactured  goods,  and  that  any  articles  made  free  in 
Canada  under  agreement  with  any  foreign  country  must 
be  made  free  to  Groat  Britain,  But  we  added  that  the 
Government  of  Canada  was  desirous  to  aftbrd  every  facil- 
ity for  the  encouragement  of  extended  commercial  relations 
between  the  Republic  and  the  Dominion,  in  the  belief  tliat 
nothing  could  tend  more  to  their  mutual  advantage,  not 
only  in  a  pecuniary  sense,  but  as  tending  to  foster  and 
strengthen  those  friendly  feelings  that  ought  eminently  to 
prevail  between  two  peoples  mainly  derived  from  the  same 
origin,  speaking  the  same  language,  and  occupying  the 
geographic  position  towards  each  other  of  the  United 
States  and  Canada.  We  conveyed  to  you  the  assurance  of 
the  Canadian  Government,  that  acting  in  this  spirit,  and 
in  the  confidence  that  we  would  be  met  in  the  same  spirit 
by  the  Government  of  the  Republic,  the  assent  of  Canada 
will  be  heartily  given  to  any  measure  calculated  to  pro- 
mote the  free  and  fair  interchange  of  commodities,  to  re- 
duce the  cost  of  transportation,  or  conduce  to  the  joint  ad- 
vantage of  the  two  countries,  so  that  it  be  not  seriously 
prejudicial  to  existing  industrial  interests  of  the  Canadian 
people. 

In  the  spirit  of  this  assurance,  we  invited  you  to  suggest 
for  discussion  the  classes  of  manufactures  that  you  would 
desire  to  have  embraced  in  the  new  treaty.  This  you  de- 
clined to  do;  but  you  urged  that  we  should  indicate  the 
enlargements  of  the  old  Treaty  likely  to  he  acce[)table  to 
both  countries.  Without  acquiescing  in  the  propriety  of 
this  course,  we  yielded  to  your  wishes,  an<l  now  proceed  to 
fulfil  our  promise  to  do  so. 


It 


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28 


SUOQESTIONS. 


We  propose  that  the  new  Treaty  shall  be  for  the  terra  of 
twenty-one  years, — to  ins[)ire  confidence  among  business 
men  investing  their  capital  in  Guch  extensive  enterprises  as 
would  naturally  follow  from  the  completion  of  a  compre- 
hensive Treaty. 

We  propose  that  the  Treaty  shall  provide  for  the  free 
admission  into  the  United  States,  the  Dominion  of  Canada 
and  the  island  of  Newfoundland,  of  the  following  articlep, 
as  under  the  treaty  of  1854: 

Animals  and  their  products. 

Animals  of  all  kinds. 

Butter. 

Cheese. 

Eggs. 

Furs,  undressed. 

Hides,  undressed. 

Horns. 

Lard. 

Meats,  fresh,  smoked  or  salted. 

Pelts. 

Poultry. 

Skins,  undressed. 

Tails,  undressed. 

Tallow. 

Wool. 

Products  of  the  farm. 

Breadstuff's  of  all  kinds. 

Broom-corn. 

Cotton-wool. 

Flax,  unmanufactured. 

Flour  of  all  kinds. 

F  uits,  dried  and  undried. 

V    ain  of  all  kinds. 

■     mp,  unmanufactured. 

Hunts. 

Rice. 

Seeds, 

Shrubs. 


I  I 


29 

Tobacco,  unmanufactured. 
Tow,  unmanufactured. 
Trees. 
Vegetables. 

Products  of  the  forest. 

Asbes. 

Bark. 

Firewood. 

Lumber  of  all  kindH,  round,  bewed  or  sawed,  unmanu- 
factured in  wbole  or  in  part. 

Pitch. 

Tar. 

Timber  of  all  kinds,  round,  bewed  or  sawed,  unmanu- 
factured in  wbole  or  in  part. 

Turpentine. 

Products  of  the  mine. 

Purr  or  grindstones,  bewn,  wrought  or  unwrougbt. 

Coal. 

Gypsum,  ground  or  unground. 

Marble  in  its  crude  or  unwrought  state. 

Ores  of  all  kinds  of  metals. 

Slate. 

Stone  in  its  crude  or  unwrought  state. 

Products  of  the  water. 

Fish  of  all  kinds. 

Fish,  products  of,  and  of  all  other  creatures  living  in  the 
water. 
Fish  oil. 


Sundries. 


Dye-stuffs. 

Manures. 

Rags. 


We  propose  the  following  additions  to  the  above  list  of 
free  articles: 

Agricultural  implements — to  be  defined. 
Bark,  extracts  of,  for  tanning  purposes. 


30 


Biitli  bric'kH. 

Bricks  for  biiilditiii^  purpoiHes. 

Kiirtli  ochres,  ground  or  uiigromid. 

liny. 

Lime. 

Malt. 

Miiiiiiructures  of  iron  or  stool. 

Miiiiufacdiros  of  iron  or  steel  and  wood  jointly. 

Miuinfrtcturea  of  wood. 

Mineral  and  other  oils. 

l*laster,  raw  or  calcined. 

Salt. 

Straw. 

Stone,  marble  or  granite,  partly  or  wholly  cut  or  wrought. 


We  propose  tliat  the  enjoyment  of  the  Canadian  coast 
fisheries  shall  be  conceded  to  tiie  United  States  during 
the  continuance  of  the  new  Treaty,  In  the  manner  and  on 
the  conditions  provided  under  the  Washington  Treaty,  ex- 
cept tliose  in  regard  to  the  payment  of  money  compensa- 
tion for  tlie  privilege. 

W(>  propose  that  during  the  continuance  of  the  Treaty 
the  coasting  trade  of  Canada  and  of  the  United  States  shall 
be  thrown  oi)en  to  the  vessels  of  botii  countries  on  a  foot- 
ing of  (complete  reciprocal  equality. 

We  propose  that  the  Canadian  canals,  from  Lake  Erie 
to  Montreal,  b(i  enlarged  forthwith  at  the  expense  of  Can- 
ada, so  as  to  ailniit  of  the  [)assiige  of  vessels  260  feet  in 
length,  witli  45  feet  beam,  witli  a  depth  etpial  to  the  capacity 
of  till'  lake  harbors. 

Wf  |iro[»ose  that,  during  the  continuance  of  tlie  Treaty, 
all  the  Canadian  canals  and  the  Erie,  Whitehall,  SaultSte. 
Marie,  and  Lake  St.  Clair  canals,  in  the  United  States,  shall 
be  thrown  open  to  the  vessels,  boats,  and  barges  of  both 
count  lies  on  the  same  terms  and  conditions  to  the  citizens 
of  both  countries ;  and  that  full  power  be  given  to  tranship 
cargo  from  ships  or  steamers  into  canal-boats  at  any  canal 
entrance,  and  also  to  tranship  boats  into  ships  or  steamers 
at  any  canal  outlet. 


31 


The  free  navigation  of  the  St.  Lawrence  river  having 
been  conceded  forever  by  Great  Britain  to  the  United 
States  under  the  Washington  Treaty,  but  the  free  naviga- 
tion of  Lake  Michigan  having  been  conceded  for  ton  years 
only  by  the  United  States  to  Great  Britain  under  the  same 
Treaty,  we  propose  that  both  concessions  be  placed  on  the 
some  footing,  free  from  restrictions  as  to  reporting  at  any 
port  in  tlie  United  States  other  than  tlie  port  of  destination. 

We  propose  that  during  the  contininuice  of  the  1'reaty 
vessels  of  all  kinds,  built  in  the  United  States  or  Canada, 
may  be  owned  and  sailed  by  the  citizens  of  the  other,  and 
be  entitled  to  registry  in  either  country,  and  to  all  the 
benefits  thereto  pertaining. 

We  propose  that  a  Joint  Commission  shall  be  formed,  and 
continued  during  the  operation  of  the  Treaty,  for  deepon- 
ing  and  maintaining  in  thoroughly  efficient  condition  the 
navigation  of  the  rivers  St.  Clair  and  Detroit,  and  Lake  St. 
Clair,  on  whichever  side  of  the  river  the  best  cliannel  shall 
be  found;  the  expense  to  he  defrayed  jointly  by  the  con- 
tracting parties,  by  contributions  corresponding  to  the 
commerce  carried  on  in  these  waters  by  them  respectively. 

We  propose  that  a  Joint  Commission  shall  be  formed,  at 
joint  expense,  a«d  maintained  during  the  operation  of  the 
new  Treaty,  for  securing  the  erection  and  proper  regulation 
of  nil  Liglit-houses  on  the  great  lakes  common  to  both 
countries,  necessary  to  the  security  of  the  shi[)pinir  thereon. 

We  propose  that  a  Joint  Commission  shall  be  formed  at 
joint  expense,. and  miiintained  during  the  continuance  of 
the  Treaty,  to  promote  the  pro[»agation  offish  in  the  inland 
waters  common  to  both  countries,  and  to  e?iforce  tho  laws 
enacted  for  the  protection  of  the  fish  and  fishing  grounds. 

We  propose  that  citizens  of  either  country  shall  b(>  en- 
titled, during  the  continuance  of  the  Treaty,  to  take  out 
Letters  Patent  for  new  discoveries  in  the  other  country,  on 
the  same  footing  as  if  they  had  been  citizens  of  that  coun- 
try. 

We  propose  that  the  best  method  of  discountenancing 
and  punishing  illicit  trade  between  the  countries  shall  be 


■T'W^'i 


82 

the  subject  of  consideration  and  co-operation  by  the  Cus- 
toms AirMiorities  of  the  two  countries. 

That  in  case  a  Treaty  of  Commercial  Reciprocity  should 
not  have  been  conchided  before  the  end  of  the  present  ses- 
sion of  Congress,  tlie  right  of  adjudication  of  the  chiim  of 
Canada  to  compensation  for  the  tisheries,  under  articles 
XXII  to  XXV  of  the  Treaty  of  Washington,  would  'n  no 
degree  be  waived,  and  that  in  that  event  the  fulfilment  of 
the  stipulation  contained  in  those  articles  would  be  imme- 
diately proceeded  with. 

Wasiiinuton,  D.  C,  27  April,  1874. 

(Signed)  EDWARD  THORNTON, 

GEO.  BROWN. 


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